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Wilmar: Buy or sell?

Wednesday, January 2, 2013

Today, one person asked me if she should still buy Wilmar's shares while another person asked me where is the first resistance level in case share price continues to rise. One person is thinking of putting in a long position while another person is thinking of possibly divesting.

Daily chart

It is obvious to any chartist that Wilmar's share price broke resistance.

On the daily chart, the descending 200dMA at $3.62 or so is where we would find the next resistance level. The 200dMA could push share price down in the near term. It has that ability. If that should happen, then, it presents a chance for anyone who missed the boat earlier to buy in.

Weekly chart

If the 200dMA could be overcome, then, looking at the weekly chart, we see the next significant resistance provided by the declining 50w MA. In very bullish circumstances, we could see the 100w MA tested in due course. The longer term technicals are supportive of this but it could take weeks for it to happen. If this should happen, it would be a nice price for divestment, wouldn't it?

Related post:
Wilmar: Smart money outflow is reversing.

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7 comments:

Kim said...

Hi AK

Thank u:)

ock

AK71 said...

Hi ock,

I didn't do anything. ;p

yeh said...

for me, i wont chasing flying stock as i wont know when the music will stop.
i am looking at IFS and Kreuz,AK, hope you dont mind and take a look.
many thanks.

yeh said...

hi ak, marco polo 40 cent still worth to buy? i Qing 37 cent seem hard to get.

AK71 said...

Hi yeh,

I will have to decline the request to look at IFS and Kreuz. Looking at companies takes a lot of time.

I did 2nd Chance for another reader because I have looked at it months before and I was stuck at home on X'mas Day anyway. And with some background knowledge, that blog already took me more than an hour to produce.

I would suggest that you use this opportunity to pick up some FA and TA. I have a section on FA on my right sidebar. Scroll down. You can't miss it. TA, pick up a book. I blogged about "TA for Dummies" just last night. I hope those special offer copies are still available. Take your time to learn. The market will always be there.

You have made a very sensible comment about not chasing a stock. What about Marco Polo? ;)

Well, there are people who are called breakout chasers. When a stock breaks resistance, they buy in and when the stock price hits the next resistance, they sell.

Buy or not buy Marco Polo now? It is at resistance now and it is your call. :)

AhJohn said...

Hi AK, if look backward, your last posts was good timing to buy in, at Oct.
If compare with Wilmar and Noble, I will prefer Wilmar, higher EPS growth rate and lower debt.But haven't looked at the business detial yet, only from macro view. Valuation at historical low. I will try to buy some first, then if price drop to less than 3.2, will buy more.

AK71 said...

Hi Ah John,

Our hindsight is always perfect, both yours and mind. ;)

$3.20 was resistance. High chance it could have turned support. So, I expect strong buying interest if share price should go that low again. :)

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